MORGAN STANLEYMS
MORGAN STANLEY Segments Disclosure
Segment, Geographic and Revenue Information
The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization, which is consistent with the approach used by the Firm’s chief operating decision maker (“CODM”) to assess the Firm’s financial performance. The Firm provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth
Management and Investment Management. For a further discussion of the business segments, see Note 1.
Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures.
As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results.
The Firm’s CODM is its Chief Executive Officer, who evaluates segment performance and allocates resources based on numerous business, strategic and financial considerations. The CODM’s financial considerations include analysis of multiple segment profit measures, such as Income before provision for income taxes and Pre-tax margin. Furthermore, the CODM evaluates certain additional segment performance metrics including Return on average common equity. The segment profit measures are calculated in accordance with U.S. GAAP and are consistent with the amounts presented in the Firm’s consolidated income statement.
The CODM’s review of the profit measures includes evaluation of segment profitability and assessment of actual results compared to budget. These measures are regularly provided to the CODM and are a component of a multifaceted decision-making process regarding segment performance as well as resource and capital allocation.
Selected Financial Information by Business Segment
| 2025 | |||||||||||||||||
| $ in millions | IS | WM | IM | I/E | Total | ||||||||||||
| Investment banking | $ | 7,619 | $ | 760 | $ | — | $ | (180) | $ | 8,199 | |||||||
| Trading | 17,721 | 855 | (98) | 78 | 18,556 | ||||||||||||
| Investments | 562 | 130 | 659 | — | 1,351 | ||||||||||||
Commissions and fees1 | 3,302 | 2,973 | — | (339) | 5,936 | ||||||||||||
Asset management1, 2 | 753 | 18,627 | 6,068 | (303) | 25,145 | ||||||||||||
| Other | 918 | 498 | 12 | (16) | 1,412 | ||||||||||||
| Total non-interest revenues | 30,875 | 23,843 | 6,641 | (760) | 60,599 | ||||||||||||
| Interest income | 43,684 | 16,311 | 57 | (989) | 59,063 | ||||||||||||
| Interest expense | 41,479 | 8,400 | 173 | (1,035) | 49,017 | ||||||||||||
| Net interest | 2,205 | 7,911 | (116) | 46 | 10,046 | ||||||||||||
| Net revenues | $ | 33,080 | $ | 31,754 | $ | 6,525 | $ | (714) | $ | 70,645 | |||||||
| Provision for credit losses | $ | 302 | $ | 47 | $ | — | $ | — | $ | 349 | |||||||
Compensation and benefits3 | 9,785 | 16,950 | 2,481 | — | 29,216 | ||||||||||||
Non-compensation expenses3 | 11,756 | 5,464 | 2,566 | (660) | 19,126 | ||||||||||||
| Total non-interest expenses | $ | 21,541 | $ | 22,414 | $ | 5,047 | $ | (660) | $ | 48,342 | |||||||
| Income before provision for income taxes | $ | 11,237 | $ | 9,293 | $ | 1,478 | $ | (54) | $ | 21,954 | |||||||
| Provision for income taxes | 2,430 | 2,163 | 349 | (13) | 4,929 | ||||||||||||
| Net income | 8,807 | 7,130 | 1,129 | (41) | 17,025 | ||||||||||||
| Net income applicable to noncontrolling interests | 157 | — | 7 | — | 164 | ||||||||||||
| Net income applicable to Morgan Stanley | $ | 8,650 | $ | 7,130 | $ | 1,122 | $ | (41) | $ | 16,861 | |||||||
Pre-tax margin4 | 34 | % | 29 | % | 23 | % | N/M | 31 | % | ||||||||
| 2024 | |||||||||||||||||
| $ in millions | IS | WM | IM | I/E | Total | ||||||||||||
| Investment banking | $ | 6,170 | $ | 653 | $ | — | $ | (118) | $ | 6,705 | |||||||
| Trading | 15,967 | 733 | 9 | 54 | 16,763 | ||||||||||||
| Investments | 406 | 85 | 333 | — | 824 | ||||||||||||
Commissions and fees1 | 2,905 | 2,478 | — | (289) | 5,094 | ||||||||||||
Asset management1, 2 | 646 | 16,501 | 5,627 | (275) | 22,499 | ||||||||||||
| Other | 607 | 657 | 14 | (13) | 1,265 | ||||||||||||
| Total non-interest revenues | 26,701 | 21,107 | 5,983 | (641) | 53,150 | ||||||||||||
Interest income | 39,332 | 16,247 | 112 | (1,556) | 54,135 | ||||||||||||
Interest expense | 37,953 | 8,934 | 234 | (1,597) | 45,524 | ||||||||||||
| Net interest | 1,379 | 7,313 | (122) | 41 | 8,611 | ||||||||||||
| Net revenues | $ | 28,080 | $ | 28,420 | $ | 5,861 | $ | (600) | $ | 61,761 | |||||||
| Provision for credit losses | $ | 202 | $ | 62 | $ | — | $ | — | $ | 264 | |||||||
Compensation and benefits3 | 8,669 | 15,207 | 2,302 | — | 26,178 | ||||||||||||
Non-compensation expenses3 | 10,460 | 5,411 | 2,422 | (570) | 17,723 | ||||||||||||
| Total non-interest expenses | $ | 19,129 | $ | 20,618 | $ | 4,724 | $ | (570) | $ | 43,901 | |||||||
| Income before provision for income taxes | $ | 8,749 | $ | 7,740 | $ | 1,137 | $ | (30) | $ | 17,596 | |||||||
| Provision for income taxes | 1,947 | 1,852 | 275 | (7) | 4,067 | ||||||||||||
| Net income | 6,802 | 5,888 | 862 | (23) | 13,529 | ||||||||||||
| Net income applicable to noncontrolling interests | 136 | — | 3 | — | 139 | ||||||||||||
| Net income applicable to Morgan Stanley | $ | 6,666 | $ | 5,888 | $ | 859 | $ | (23) | $ | 13,390 | |||||||
Pre-tax margin4 | 31 | % | 27 | % | 19 | % | N/M | 28 | % | ||||||||
| 2023 | |||||||||||||||||
| $ in millions | IS | WM | IM | I/E | Total | ||||||||||||
| Investment banking | $ | 4,578 | $ | 454 | $ | — | $ | (84) | $ | 4,948 | |||||||
| Trading | 14,468 | 823 | (59) | 31 | 15,263 | ||||||||||||
| Investments | 177 | 62 | 334 | — | 573 | ||||||||||||
Commissions and fees1 | 2,540 | 2,279 | — | (282) | 4,537 | ||||||||||||
Asset management1,2 | 596 | 14,019 | 5,231 | (229) | 19,617 | ||||||||||||
| Other | 480 | 513 | (7) | (11) | 975 | ||||||||||||
| Total non-interest revenues | 22,839 | 18,150 | 5,499 | (575) | 45,913 | ||||||||||||
Interest income | 32,383 | 15,015 | 135 | (1,684) | 45,849 | ||||||||||||
Interest expense | 32,162 | 6,897 | 264 | (1,704) | 37,619 | ||||||||||||
| Net interest | 221 | 8,118 | (129) | 20 | 8,230 | ||||||||||||
| Net revenues | $ | 23,060 | $ | 26,268 | $ | 5,370 | $ | (555) | $ | 54,143 | |||||||
| Provision for credit losses | $ | 401 | $ | 131 | $ | — | $ | — | $ | 532 | |||||||
Compensation and benefits3 | 8,369 | 13,972 | 2,217 | — | 24,558 | ||||||||||||
Non-compensation expenses3 | 9,814 | 5,635 | 2,311 | (520) | 17,240 | ||||||||||||
| Total non-interest expenses | $ | 18,183 | $ | 19,607 | $ | 4,528 | $ | (520) | $ | 41,798 | |||||||
| Income before provision for income taxes | $ | 4,476 | $ | 6,530 | $ | 842 | $ | (35) | $ | 11,813 | |||||||
| Provision for income taxes | 884 | 1,508 | 199 | (8) | 2,583 | ||||||||||||
| Net income | 3,592 | 5,022 | 643 | (27) | 9,230 | ||||||||||||
| Net income applicable to noncontrolling interests | 139 | — | 4 | — | 143 | ||||||||||||
| Net income applicable to Morgan Stanley | $ | 3,453 | $ | 5,022 | $ | 639 | $ | (27) | $ | 9,087 | |||||||
Pre-tax margin4 | 19 | % | 25 | % | 16 | % | N/M | 22 | % | ||||||||
1.Substantially all revenues are from contracts with customers.
2.Includes certain fees that may relate to services performed in prior periods.
3.The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.
Detail of Investment Banking Revenues
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Institutional Securities—Advisory | $ | 2,888 | $ | 2,378 | $ | 2,244 | |||||
| Institutional Securities—Underwriting | 4,731 | 3,792 | 2,334 | ||||||||
| Firm Investment banking revenues from contracts with customers | 84 | % | 90 | % | 91 | % | |||||
Trading Revenues by Product Type
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Interest rate | $ | 4,358 | $ | 5,901 | $ | 4,646 | |||||
| Foreign exchange | 1,698 | 1,170 | 1,054 | ||||||||
Equity1 | 11,937 | 9,005 | 8,929 | ||||||||
| Commodity and other | 1,967 | 2,003 | 1,624 | ||||||||
| Credit | (1,404) | (1,316) | (990) | ||||||||
| Total | $ | 18,556 | $ | 16,763 | $ | 15,263 | |||||
1.Dividend income is included within equity contracts.
The previous table summarizes realized and unrealized gains and losses primarily related to the Firm’s Trading assets and liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes.
Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest
| $ in millions | At December 31, 2025 | At December 31, 2024 | ||||||
| Net cumulative unrealized performance-based fees at risk of reversing | $ | 926 | $ | 796 | ||||
The Firm’s portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 14 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received.
Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Fee waivers | $ | 117 | $ | 99 | $ | 93 | |||||
The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940.
Certain Other Fee Waivers
Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.
Other Expenses—Transaction Taxes
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Transaction taxes | $ | 1,289 | $ | 926 | $ | 866 | |||||
Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are levied on trades of listed derivative instruments in certain countries.
Net Revenues by Region
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Americas | $ | 52,897 | $ | 46,929 | $ | 41,651 | |||||
| EMEA | 8,328 | 7,197 | 6,058 | ||||||||
| Asia | 9,420 | 7,635 | 6,434 | ||||||||
| Total | $ | 70,645 | $ | 61,761 | $ | 54,143 | |||||
Income before Provision for Income Taxes
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| U.S. | $ | 15,846 | $ | 12,526 | $ | 8,334 | |||||
Non-U.S.1 | 6,108 | 5,070 | 3,479 | ||||||||
| Total | $ | 21,954 | $ | 17,596 | $ | 11,813 | |||||
1.Non-U.S. income is defined as income generated from operations located outside the U.S.
The Firm operates in both U.S. and non-U.S. markets. The Firm’s non-U.S. business activities are principally conducted and managed through EMEA and Asia locations. The net revenues disclosed in the previous table reflect the regional view of the Firm’s consolidated net revenues on a managed basis, based on the following methodology:
Institutional Securities: Client location for advisory and equity underwriting, syndicate desk location for debt underwriting, trading desk location for sales and trading.
Wealth Management: Americas, where representatives operate.
Investment Management: Client location, except certain closed-end funds, which are based on asset location.
Revenues Recognized from Prior Services
| $ in millions | 2025 | 2024 | 2023 | ||||||||
| Non-interest revenues | $ | 2,303 | $ | 1,870 | $ | 1,778 | |||||
The previous table includes revenues from contracts with customers recognized where some or all services were performed in prior periods. These revenues primarily include investment banking advisory fees.
Receivables from Contracts with Customers
| $ in millions | At December 31, 2025 | At December 31, 2024 | ||||||
| Customer and other receivables | $ | 3,002 | $ | 2,628 | ||||
Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer.
Assets by Business Segment
| $ in millions | At December 31, 2025 | At December 31, 2024 | ||||||
| Institutional Securities | $ | 969,553 | $ | 796,608 | ||||
| Wealth Management | 433,017 | 400,848 | ||||||
| Investment Management | 17,700 | 17,615 | ||||||
Total1 | $ | 1,420,270 | $ | 1,215,071 | ||||
1. Parent assets have been fully allocated to the business segments.
Total Assets by Region
| $ in millions | At December 31, 2025 | At December 31, 2024 | ||||||
| Americas | 994,553 | $ | 893,170 | |||||
| EMEA | 228,870 | 179,187 | ||||||
| Asia | 196,847 | 142,714 | ||||||
| Total | $ | 1,420,270 | $ | 1,215,071 | ||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.